The Way to the Top Page 10

  Today, as CEO of a large health care corporation, the lessons I learned early on—some the hard way and some through advice of wise souls, like my father, coaches, teammates, and former bosses—serve as the foundation for my progressive management style.

  At the beginning of my career, I excelled as a salesman. When a boss asked me to move and take over a new territory, I was hesitant to make a change because I had built the best territory in the company. But he advised me that the only way to grow and succeed was to step out of my comfort zone. After thinking about this long and hard, I uprooted my family from Detroit—where I was comfortable and settled—to Kalamazoo, Michigan. And when I relocated my family again in 1992 to California to aid a company on the brink of bankruptcy, I strayed from my comfort zone again. These changes taught me how to take risks and overcome fear, and I realized that I should never settle. The more you embrace change and welcome challenges, the more you overcome fear. And, the more experiences you undergo, the less fear you have.

  I try to teach this philosophy to employees every day. I work hard to foster teamwork and create solid, collaborative relationships between senior management members and different organizational ranks. I also strive to build bridges between various departments within the company and to remain a highly visible leader. My goal is to encourage, engage, and inspire across all levels of the company.

  I have learned firsthand how this cohesive team approach and employee involvement can change the face of corporate America. By implementing systems that raise accountability among employees and offer incentives for good performance, we drastically motivated our team and took them all for a wild ride down the corporate restructuring path. A few years later, we all emerged better and stronger from it.

  I often reminisce about the specific lessons I learned but welcome the fact that I am still learning. And teaching. If we can prepare the leaders of tomorrow today by offering sound, simple advice, then we are sure to have many great successes on the horizon.

  Never stop striving, never stop learning, never stop teaching

  Ernesta G. PROCOPE

  President of EG Bowman Company, Inc.

  I have followed this wise advice: “Your product (in my case, commercial insurance brokerage) is not ethnic. Therefore, your marketing strategies should be directed to economic mainstream America.”

  Tailor your marketing to your market

  Roxanne QUIMBY

  President of Burt’s Bees

  One of our sales representatives zeroed in on a key aspect of success when conducting a sales presentation: If they don’t have the authority to say yes, then they don’t have the authority to say no.

  Deal directly with decision makers

  Rich REESE

  President and CEO of Jim Beam Brands Worldwide, Inc.

  My grandfather, a farmer, told me that hard work and preparation will overcome a lot of obstacles. I have never forgotten that advice.

  Coming out of a twelve-year professional baseball career without the cushion of a college degree, I had to prepare and work very hard. I encourage all of the scholars of the world to understand that there are very capable people who were not fortunate enough to be able to attend college.

  If you apply the preparation and the hard work, you will go far. But while you’re striving for success, keep this sentence in mind, one that’s been around a long time: “I don’t know the key to success, but I know the key to failure—trying to please everyone.”

  Preparation paves the way

  Jerry M. REINSDORF

  Chairman of Chicago White Sox and Chicago Bulls

  When I was leaving home to attend college, afraid that I could not compete in a larger world than high school, my family physician said something interesting. He told me that the most successful people, which he defined as the top 10 percent, were not that smart. They were just not as dumb as the bottom 90 percent.

  He also told me that there was no competition at the top, but neglected to mention that there’s plenty of competition on the way there.

  You are smart enough

  Peter G. RIGUARDI

  President of the New York region of Jones Lang Lasalle

  My father, Edward Riguardi, alongside whom I am fortunate to continue to work, told me this: You no longer have just your name. You have your name and whatever people say after it. As long as what they say is good, everything else will take care of itself.

  Honor your reputation

  Richard ROMANOFF

  CEO and President of Nebraskaland

  Problems are a good thing. Any company that doesn’t have its share of complicated problems probably doesn’t have a very hearty business.

  If your problem lies with your boss, watch out. There is a danger in asking for a new czar. No matter how bad your current boss, supplier, or business associate is, at least you know him. A new one can always be worse.

  But in the middle of any difficulty lies opportunity. When things are going good, no one wants change. Greet difficulty as an opportunity for creative and financial enhancement.

  And keep in mind that those toughest potential customers, who seem impossible to crack, will turn out to be your most loyal ones.

  Problems can lead to prosperity

  Peter J. ROSE

  Chairman and CEO of Expeditors International of Washington, Inc.

  In my forty-five years of working, I’ve been given plenty of advice—some sage, some useless. My father provided some of the former: “Never get so drunk at a company function that you’ll regret it in the morning.

  “Never take anything from anyone in the way of kickbacks, payoffs, bribes, and/or extravagant gifts, which will come back to haunt you, and they always do.

  “Be honest, have integrity. No one can take that away from you.”

  And so did baseball great Satchel Paige, although I didn’t know him personally: “Don’t look back. Something might be gaining on you.”

  Together with these nuggets, I’ve taken scattered bits of advice and compiled a personal credo:

  Friendly competitor is an oxymoron.

  Most mergers and acquisitions don’t work.

  Avoid scams, e.g., Y2K, dot-com, stockbrokers, consultants. This saves money and grief.

  Be a mentor.

  Be a leader, not a boss.

  Don’t be political on the job, but be politically aware.

  Be patient!

  Don’t ever be a “yes” person; stand up for what you believe in.

  One is never finished learning.

  Degrees don’t matter; one must have drive, ambition, hustle, street smarts, and common sense.

  Computers are an assist, not a solution.

  Use the DELETE button often.

  And finally, remember people pull for you only on the way up; once you’ve made it, they want to see you fall and stand over you, saying, “I knew you wouldn’t make it.”

  Notes on 45 years in business

  Laurie SCALA

  President of Clean Water Technologies, Inc.

  Pick a career that you really love, and then you will love what you do. And if you love what you do, you’ll be successful!

  Love what you do

  Joel A. SCHWARTZ

  President of Benihana Inc.

  When I was just starting out in my career as President of Benihana, I was deep in negotiations for a new lease transaction. The other side was putting pressure on us to conclude the transaction by a certain time or they would walk away from the deal. I was ready to agree to their terms; however, my attorney advised me to never let a calendar or clock make a deal for me. I didn’t, and we went on to make a much better and more appropriate deal for a lease than the original.

  Never let a calendar or clock close a deal

  Tim SEAR

  Chairman, President, and CEO of Alcon, Inc. and Alcon Laboratories, Inc.

  Don’t join a company or organization of any type unless you are totally comfortable with the prospect of working with the people yo
u met in the interview process. Did you like them? Would you trust them? Does the team seem bright, positive, and destined to succeed?

  And whatever the financial incentives, don’t commit yourself to a product, service, or profession that you won’t be proud of, that you won’t be eager to tell your family and friends about. You are going to spend the majority of your time making, selling, promoting, and extolling the virtues of something that you will be intimately associated with in your mind and everyone else’s. Choose well.

  Align yourself with a company of similar values

  Ivan SEIDENBERG

  Chairman and CEO of Verizon

  When I was eighteen, I got my first job, as a janitor in an office building in Manhattan. I was the guy who opened the door, swept the floor, polished the chrome, and ran the freight elevator. My boss was the building superintendent, an older guy named Bill. Bill hardly ever said anything, but he worked like a dog—harder than anybody else on the crew. It seemed to me that if my boss was working that hard, then I should, too, so that’s what I did.

  Once in a blue moon, Bill would actually talk to me. One day, he saw me reading a book and asked me about it. I told him I was putting myself through college at night. About eight months later, he came up to me and said, “You know, there are companies that will help you pay for college while you work full-time.” I asked him which ones—he said to try the electric or the phone company—and I did what he said, applying to New York Telephone. I started a career in communications there that’s lasted almost forty years.

  When I asked Bill why he took eight months to get around to mentioning this to me, he just shrugged and said, “I guess I wanted to see if you were worth it.”

  Your values, work ethic, and personal standards are always visible, whether you’re a janitor or a CEO. I’ve always conducted myself in business according to that very simple rule: Work hard . . . because somebody’s always watching.

  Work hard. . . . Someone’s always watching.

  R. Scot SELLERS

  Chairman and CEO of Archstone Smith

  Spend time building relationships, not chasing accomplishments.

  We were created for relationships, and it is in the relationships, not in the accomplishments, that we find our fulfillment. Not only does the pursuit of meaningful relationships with others produce a more rewarding life, but it is also good for business. People like to do business with those whom they like and trust. Honest relationships lead to long-standing business partnerships and significant future opportunities.

  Building relationships requires a focus on the needs of others instead of ourselves. This attention to others produces strong loyalty from many different constituencies, including employees, customers, business partners, and those to whom we report, all of which is good for business.

  The relationship-focused executive places an even greater priority and emphasis on family relationships than those at the office. Without deep, lasting relationships at home, business and financial success is of little value.

  Personal relationships trump trophies

  Robert E. SELSAM

  Senior Vice President of Boston Properties

  To give or get a “yes” answer, meet face to face. For a “no,” use the phone.

  “In person” propels progress

  Mayo A. SHATTUCK III

  Chairman, President, and CEO of Constellation Energy Group

  I was President of Alex. Brown & Sons, the oldest independent investment bank in the country before it was sold to Bankers Trust in 1997. A principle had guided the firm for almost two centuries, and it was: “Customer first, firm second, individual interests third.” This simple statement was the abridged version of a 1909 quote from John C. Brown, one of the founder’s descendants:

  I would like to leave with those who are to follow . . . a sense of commercial honor, an absolute fairness in all dealings, a willingness to suffer pecuniary loss if need be, rather than to tarnish by one unworthy act the good name of the Firm.

  At Alex. Brown, we asked all employees to literally sign a value statement that included this principle. Throughout the years, I witnessed and participated in hundreds of discussions that fell back to this core value statement. It guided us through some difficult and many prosperous years. Besides protecting the firm’s reputation and its relations with its customers, it also had the effect of fostering teamwork and the idea that no one individual was bigger than the firm.

  As we forge ahead in the twenty-first century, it’s particularly interesting that the values set two centuries ago—a focus on clients’ needs, uncompromising integrity, and a commitment to quality and excellence—are still the fundamental foundation to success in business.

  Customer first, firm second, individual interests third

  Stephen B. SIEGEL

  Chairman and CEO of Insignia/ESG Inc.

  During a presentation, conversation, interview, or a sales pitch, too many people really do not listen to what is being said to them. Instead, they are anticipating opportunities to state their case or to make their pitch. This will almost always, whether you’re a manager, salesperson, or someone on an interview, fail to create a connection between you and the other person involved in the conversation. Important opportunities to pick up information and apply it spontaneously to the task at hand are lost, and the probability of success in whatever the endeavor declines substantially. Learn how to listen—don’t just wait to talk.

  Listen—don’t just wait to talk

  Henry R. SILVERMAN

  Chairman, President, and CEO of Cendant Corporation

  Our system of capitalism is built on the presumption of honesty, respect for the rule of law, and the assumption that institutions of stature and credibility will tell the truth.

  In my thirty-eight years in business, I have gained a number of deeply practical insights—the most important of which is that in the end you must rely upon the truthfulness of the people you are dealing with. We have all come to know that every good partnership—whether in business or marriage—is based on trust.

  So how do we deal with the subversion of our financial system? What do we rely upon? The answer is quite simple: our own integrity. We have an unwavering obligation to tell the truth, tell it all, and tell it now to shareholders, employees, and customers who have placed their trust in our companies.

  These constituents and our markets have suffered greatly from the frauds at companies like Adelphia, Enron, and Worldcom. Our responsibility as business leaders is to restore the trust and hopefully the wealth by building and maintaining public companies that foster candor, openness, and above all, integrity.

  Tell the truth, tell it all, tell it now

  Larry A. SILVERSTEIN

  President of Silverstein Properties

  I was told many years ago by the man whose name I carry that “It takes a lifetime to build a reputation and one foolish act to kill it, and that it is our most precious possession as we have to earn it, and money cannot buy it.” When I asked how we know which way to turn when in a quandary, he suggested the New York Times test: “If you can’t put it in bold type on the front page of the New York Times because it might embarrass you, don’t do it!” He added, “Take the high road and do what is right when dealing with people. Treat them exactly as you wish to be treated.”

  Act as if the world can see how all your affairs are conducted

  Irina SIMMONS

  President and Treasurer of EMC Corporation

  Surprise lessons in one’s career can occur anywhere. Mine happened during a weeklong leadership development program with a number of my peers at EMC Corporation. I had joined EMC as Assistant Treasurer two years earlier, in 1995, with a responsibility for establishing and growing the Treasury function. I knew I had joined an exciting organization. In the mid-1990s, EMC had emerged as one of the hottest, most innovative companies in the information technology industry. In fact, in 1995, EMC’s sales grew 39 percent to nearly $2 billion and it overtook IBM as
the mainframe storage market leader—a market EMC had zero share in just five years earlier. The following year saw another record in both market and financial performance.

  All of this growth and expansion brought new challenges to the Treasury function. I had many new ideas I wanted to implement, and I was determined to prove to everyone that I had the smarts, judgment, and experience to be the company’s Treasurer, a position then held by my boss, who was also the Chief Financial Officer.

  My relationship with the CFO was a bit combative at first. I was trying so hard to be viewed as the authority on treasury matters that our interactions were often argumentative. I felt that my strengths went unrecognized and that I was not progressing toward my goal. This made me angry and defensive.

  After sitting in the leadership development program for two days, listening to all the behavior styles and tactics that I thought I was already following so well but were not getting me where I needed to be, I pulled aside the instructor to discuss my personal dilemma.

  “I try hard to prove that I can handle things, and that I can run the show independently, but my boss just doesn’t seem to view me in the right light. What am I doing wrong? Or is he the problem?”

  My instructor looked at me, and asked: “Does he trust you?”

  Honestly, if someone had slapped me across the face, I would not have been more surprised or taken aback. “Trust?” I said. “What does trust have to do with anything? I come in every day, I get my job done, I do it well. . . . Where does trust come into this?”

  As a young woman trying hard to prove my value to the company, I had always focused on skills like creativity, initiative, technical expertise in my function, energy, and, above all, business results. The fact that it was remotely possible that my boss did not trust me, not as a matter of honesty or ethics, but rather as a matter of how I could influence the outcome of situations or solve problems, blew me away. Once I started to examine my behavior in that context, it really made a difference.